From the Sector

Digital Product Passports can now be processed at TEXAID’s largest sorting facility, thanks to circular.fashion’s intelligent sorting stations, which use RFID and NFC technology to improve the quality and consistency of manual sorting.

Digital Product Passports (DPP) have been recognised by the EU as an enabler for circular fashion and textiles. Technology company circular.fashion has been a leader in this effort, releasing the circularity.ID in 2018 and developing Intelligent Sorting Stations to bring ID based sorting to the textile reuse and recycling industry.

ID based sorting optimises the manual sorting process for reuse and recycling by giving sorters data to make decisions more accurately and consistently. TEXAID has, by adopting this technology, increased Europe’s capacity to process DPPs.

The installation and testing of TEXAID’s new Intelligent Sorting Stations was completed successfully shortly before the holiday period. Initial test results indicate that ID based sorting can make sorting decisions more reliable and more consistent. The team also sees a potential for ID based sorting to reduce training costs for new employees and maximise the value of their sorting decisions. This advancement was made through the CIRTEX project, funded through the KMU Innovativ funding programme from the German Federal Ministry of Education and Research.

The Intelligent Sorting Stations at TEXAID are now operational, and brands and retailers have the ability to adopt the circularity.ID as a Digital Product Passport and have textile products returned to TEXAID for ID based sorting.

Shorter product life cycles and rapid technological progress are changing the product landscape at an ever-faster pace. The ability to anticipate future changes and to proactively shape the change is therefore an increasingly decisive competitive factor for modern companies. Trends are considered to be important indicators of impending

Kelheim Fibres, a leading manufacturer of viscose speciality fibres, stands out in the industry not least for its innovative strength, as evidenced by numerous awards such as the Techtextil Innovation Award 2022 in the “New Concept” category. At this year’s Global Fiber Congress Dornbirn, Innovation Manager Ilka Kaczmarek will give an insight into the innovation management of the Bavarian fibre experts in her presentation “Trend Management meets Open Innovation: Best Practice Examples from Kelheim”. Ilka Kaczmarek will show how successful product solutions were developed in a short time by focusing on customer needs and working closely with partners along the value chain.

Natalie Wunder, Project Manager at Kelheim Fibres, will explain one of these examples in detail in her presentation “Development of Menstruation Pants using Speciality Viscose Fibres”. Based on the current trend and the desire of end customers for reusable products, Kelheim Fibres was able to develop a washable and thus reusable, yet bio-based solution for feminine hygiene products.

Geosynthetics have become an indispensable part of the construction industry. PP nonwovens, for example - mechanically bonded continuous fibres made from specially UV-stabilised polypropylenes - are often used in blanket form as barriers, screens and filters, and their strength extends the service life of construction projects. Whether for road construction, or as barrier on glaciers or against weeds - there are myriad applications.

TenCate Geosynthetics uses the PURE LOOP ISEC evo technology to recycle this type of PP nonwoven. The European company, with locations in Austria, France and the Netherlands, is specialised in the development and production of geotextiles for modern civil engineering applications. The edge trimmings and production rejects generated during manufacturing used to be recycled at the Linz site, but not fed back into the company's own production process.

"The demands on us were high," recalls Patrick Wiesinger, project manager at PURE LOOP. "The PP nonwoven is highly tear resistant, which means its a very challenging recycling process. Our ISEC evo machine conserves the quality of the production waste really well during recycling, so we were able to achieve the specified increase in quality for the recyclates."

Another advantage of PURE LOOP technology is the wide range of shapes in which the production scrap can be delivered for processing. "Our ifeed technology with double feed ram system and singleshaft shredder offers the ideal conditions for direct processing of these large rolls - and without the need for prior preparation of the input material by employees before the material is fed into the recycling process", emphasizes Patrick Wiesinger. With the ISEC evo recycling machine TenCate can now manufacture its high-strength PP nonwoven product with a recyclate content of up to 10 percent.

• Aims to tackle the immense textile waste generated in urban environments, on the back of import bans of waste materials
• Addresses the shortcomings of current textile recycling technologies, which are unsuitable for urban settings due to the use of heavy chemicals
• Technologies developed by the newly-formed RGE-NTU Sustainable Textile Research Centre will be test-bedded in RGE’s pilot urban-fit textile recycling plant, projected for completion as early as 2024

Royal Golden Eagle (“RGE”), a global group of resource-based manufacturing companies, which includes a world-leading viscose fibre producers Sateri and Asia Pacific Rayon (APR), is developing urban-fit, closed-loop textile-to-textile recycling solutions, through the newly-formed RGE-NTU Sustainable Textile Research Centre (RGE-NTU SusTex). This is a five-year research collaboration between RGE and Nanyang Technological University, Singapore (“NTU”), to accelerate innovation in textile recycling that can be deployed in urban settings. The research centre will develop new technologies to recycle textile waste into fibre and create new, next-generation eco-friendly and sustainable textiles.

This move comes on the back of the tightening of waste import bans in countries such as China, India and Indonesia, which are among the world’s largest waste processors. The stricter import bans have left cities in need of viable local textile recycling solutions to tackle the immense textile waste generated.

RGE Executive Director, Mr Perry Lim, said, “Current textile recycling technologies, which rely primarily on a bleaching and separation process using heavy chemicals, cannot be implemented due to environmental laws. At the same time, there is an urgent need to keep textiles out of the brimming landfills.” He added, “As the world’s largest viscose producer, we aim to catalyse closed-loop, textile-to-textile recycling by developing optimal urban-fit solutions that can bring the world closer to a circular textile economy.”

Globally, an estimated 90 million tonnes of textile waste is generated and disposed of every year, with less than 1% being upcycled into new clothing or other textile materials. By 2030, the amount of global textile waste, which currently accounts for almost 10% of municipal solid waste, is expected to reach more than 134 million tonnes. The textile industry is also responsible for 10% of global greenhouse gas emissions – more than international flights and maritime shipping combined.

At present, most of the available textile recycling technologies are open-loop, where textile waste is typically downcycled to lower-quality products (insulating materials, cleaning cloths, etc.) or be used in waste-to-heat recycling.

“Closed-loop textile-to-textile recycling processes, particularly chemical recycling, are still under development. Scaling up the technologies to industrial scale remains a challenge. A key bottleneck is that refabricating textile waste into fibre needs purity standards for feedstock. However, most of the clothes that we wear are made of a mixture of different synthetic and natural fibres, which makes separating the complex blends of materials challenging for effective recycling.

“Our aim is to address this industry pain point by developing viable solutions that use less energy, fewer chemicals and produces harmless and less effluents, and then potentially scale up across our global operations,” Mr Lim said.

To tackle the key challenges in closed-loop textile recycling, RGE-NTU SusTex is looking into four key research areas, namely cleaner and more energy efficient methods of recycling into new raw materials, automated sorting of textile waste, eco-friendly dye removal, and development of a new class of sustainable textiles that is durable for wear and, at the same time, lends itself to easier recycling.

Technologies developed by RGE-NTU SusTex will be test bedded at RGE’s pilot urban-fit textile recycling plant in Singapore, which is projected for completion as early as 2024. If successful, RGE has plans to replicate the plant in other urban cities within its footprint.

India’s world famous Blue City, Jodhpur, has been repainted and refreshed by AkzoNobel as part of a major “Let’s Colour” project involving 250 homes.

More than 5,600 liters of Dulux paint has been used to revitalize the iconic area of Rajasthan, which is known the world over as a leading tourist destination. As well as painting exterior walls in a distinctive shade of vibrant blue, the roofs of more than 100 houses have been coated with Dulux Weathershield Protect, which can help to reduce temperatures by up to 5˚C.

In addition, 20 colorful murals have been created along the ancient streets leading up to Mehrangarh Fort, which towers over the city. All the work, which took around four months to complete, was carried out by AkzoNobel Paint Academy painters, local artists and residents, and AkzoNobel volunteers, who combined their creative talents.

The color blue has been an integral part of Jodhpur’s identity for centuries. And reigniting the city’s timeless appeal – making it more liveable and enjoyable – was key to the whole project. So in addition to painting more than 250,000 square feet of walls, community walkways and staircases have also been given a rainbow makeover using Dulux FloorPlus paint.   

AkzoNobel’s global “Let's Colour” initiative was launched in 2009. To date, more than 2,300 projects have taken place, with over 1.3 million liters of paint being donated all over the world.

Beaulieu International Group invites EuroGeo7 attendees to discover geotextile solutions promoting greater sustainability for future civil engineering projects. Specialists from Beaulieu Fibres International (BFI) and Beaulieu Technical Textiles (BTT) will present high-performance geosynthetics through high tenacity fibres for lightweight, nonwoven geotextiles, and a range of high durability woven geotextile solutions with an environmentally beneficial impact.

“We are delighted to sponsor EuroGeo7 and to be finally on-site, following a two-year postponement of the event. EuroGeo7 is bringing the geotextile community together to further promote and develop geosynthetics in a fast changing global economy striving for growth while reducing its carbon footprint along the supply chain, " comment from Jefrem Jennard, Sales Director Fibres, and Roy Kerckhove, Sales Director Technical Textiles. “Geotextiles provide highly versatile, durable and natural resource-saving alternatives in large infrastructure works, and offer durable protection in erosion control and waste/water management projects. We are continuously developing our fibres and finished engineering textiles with proven sustainability-enhancing benefits to progress product development and customer sustainability goals on fossil carbon reduction, while taking concrete steps to reduce our own environmental footprint.”
 
Sustainability improvement is key to the long-term strategy of Beaulieu International Group, and it is committed to supporting the geotextile industry by targeting and accelerating change and communicating the sustainable performance of its products. The UN Sustainable Development Goals are integrated into its business and are the foundations of the new Route 2030 Sustainability Roadmap.

For manufacturers of nonwoven geotextiles, BFI’s high-tenacity HT8 staple fibres enable customers to achieve nonwovens with high mechanical performance at reduced fibre weight. The HT8 high tenacity fibres are designed in a way that customers can meet the industry durability standards for a longer service lifetime, supporting more sustainable design and resource reduction over time. BTT’s woven geotextiles are amongst the most sustainable in the industry and provide a wide range of functions, including separation, filtration, reinforcement and erosion control.

BFI and BTT have conducted lifecycle assessments to calculate their activities' carbon footprint and solutions and have received external recognition for their ongoing sustainability efforts. For example, in 2022, BFI was awarded a Silver EcoVadis sustainability rating, and BFI and BTT are proud recipients of the Voka Charter for Sustainable Entrepreneurship 2022.

Munich Fabric Start presents a new project-area that will take place during the next edition.
BLUEZONE with CATALYZER and KEYHOUSE will be the place to be for the blue community on 30 and 31 August. As a global key event for the denim industry, 90 international denim mills, weavers, manufacturers and suppliers will show their latest innovations and trends in the Zenithhalle, the Kohlebunker and the Kesselhaus.

"THE ITALIAN LUSTER" will offer all visitors a deep dive into the Made in Italy supply chain with companies that have turbocharged growth by focusing on quality, innovation and research. Well-known and international companies that can make an important contribution to European and global brands.

From the production of trimmings and accessories, to the creation of unique fabrics, to the inspiration of new collections and their realization to the finishing of the garments, Made in Italy still represents the reality par excellence focused on ethical and sustainable production.

"THE ITALIAN LUSTER" will allow all visitors an incredible journey into the Italian supply chain that has the ability to meet any demand of brands, from small to large production needs.

On the top floor of the Catalyzer Hall, it will be possible to view the individual collections of the companies in attendance and receive a beautiful gift specially created by the CADICA GROUP company from Carpi.

 
Participants
ACM - TRIMS AND ACCESSORIES PRODUCER
ACM was founded in 1982.
Since 1982, ACM has been providing the fashion world with unique, sought-after and customized details, guaranteeing prestigious and innovative workmanship. Each and every product is the result of the care we take at every stage of our production process: from the prototype, designed by putting the consumer's health first, to production with state-of-the-art machinery, which allows for fine workmanship and cutting-edge customization, while minimizing the impact on the environment (we are GRS certified) and complying with the strictest eco-toxicological regulations.

FASHION ART - LUXURY FASHION DESIGN
Fashionart is the brainchild of Andrea Rambaldi, who, after learning his trade from his parents, his mother a seamstress and his father the owner of a dye shop, decided to pursue a freelance career.
He began by collaborating with companies in the textile sector, where he deepened his knowledge in the field of chemistry and industrial processes, touching on the problems of processing cycles.
The real turning point came as a result of an important job for the Maison Chanel, which recognized the originality and effectiveness of his technical proposals. From that moment, this is 2008, FashionArt was born, a company focused on luxury fashion and design, expert in the design and production of garments.
From the idea to the final product, the company is able to support the client throughout the entire production process.
Since then, the company has grown and developed exponentially thanks to a team of managers, artists and experts whose experience makes them a benchmark in the high fashion industry. Fashionart operates exclusively in high fashion, a very difficult field in which to combine experience and technique with art and creativity, where our potential can be expressed to the fullest.

ELLETI - GARMENTS AND WASHING MAKER
Advocate of an approach that combines tradition, creativity, and innovation, for over 30 years Elleti Group has defined standards of absolute excellence for the denim industry. Born in the 80s in San Bonifacio, near Verona, the company developed in a one-of-a-kind context, a hotbed of ideas that led to the defining and establishing of new professions and skills in the field of denim treatment and garment personalization. Led by Luigi Lovato, right from the start the company established itself on the denim scene thanks to an ambitious and pioneering investment in new solutions. The following ten years mark an important growth which leads to the internationalization both of brand and production. After the implementing of a new department for garment dyeing, Elleti Group was ready to welcome the ever-increasing international demand, equipping itself with the first laundry in Tunisia, a country logistically central in the Mediterranean area, and as a result, ideal for the development of a complete textile supply chain. This successful story continues to unfold in the 2000s, a decade that marks the opening to the market of garment making thanks to two new structures in Romania, and peaks with the acquisition of Martelli Lavorazioni Tessili. Today Elleti Group stands firm in the market as a result of a complete offer that preserves the company’s artisanal vocation enriched through a constant process of responsible innovation.

In addition, companies BERTO INDUSTRIA TESSILE and OLIMPIAS GROUP will participate in the project by presenting their collections within their booths in the Catalyzer hall.

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner holds a doctorate in mechanical engineering, specializing in process engineering and business development. Since 2006, he has held various roles at Fraunhofer UMSICHT, most recently heading up the Products division and overseeing its 126 employees and its budget of 14.8 million euros. He has set international standards through his award-winning research into a free of water tanning leather tanning process that uses compressed carbon dioxide. With the development of innovative aerogel-based insulation materials for building facades, he has made a significant contribution to environmentally friendly, circular applications in the construction industry and initiated a number of industrial projects. One of the notable technological breakthroughs made by his team was the development of a new type of fire-resistant glass, which can withstand even the most extreme heat. This won his development team the Joseph von Fraunhofer Prize in October 2020.

Alongside becoming institute director, Prof. Renner will also take over the leadership of the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE in August 2022. In this role, he will represent the Fraunhofer-Gesellschaft on a national and international level with regard to the transformation of industry and society to a circular economy. In addition, he will start his professorship in Responsible Process Engineering at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. Over the course of his professorship, he will shape the systemic development of the circular economy at a corporate, regional and European level.

Prof. Christian Doetsch has worked in energy research for more than 25 years, spending most of this time at Fraunhofer UMSICHT. As head of the Energy division, he managed a team of around 145 employees and was responsible for a budget of approximately 10.4 million euros. His technological focal points are energy storage, Power-to-X technologies including hydrogen electrolysis and chemical conversion, catalysts, and energy system modeling and optimization. His overarching aim is the integration of renewable energies into a cross-sectoral, resilient energy system.

In 2015, Doetsch co-founded the award-winning start-up Volterion GmbH & Co. KG, which develops redox flow batteries. He attained high visibility on a global scale by redesigning stacks, one of the main components of redox flow batteries, an achievement for which he, his team and Volterion representatives were awarded the Joseph von Fraunhofer Prize in May 2021. The energy expert also acts as deputy spokesperson for the Fraunhofer Energy Alliance and task manager for the energy storage group at the International Energy Agency (IEA). He also co-founded the “Open District Hub e. V.,” an association that promotes the energy transition in the sector by means of energy systems integration.

Since January 2020, he has been Professor of Cross Energy Systems at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. In this role, he conducts research into ecological evaluation and resilience of cross-sectoral energy systems.

• Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
• Markets representing more than 85% of the business grow 14% overall
• Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
• Operating profit reaches € 392 million
• Net income from continuing operations amounts to € 360 million
• FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

In recent years, Riri Group has embarked on a process of vertical expansion aimed at broadening its product range and in-house processing, in order to provide the market with a superior quality product thanks to the variety of its services and technologies. With the acquisition of K4Sint (Knowledge for Sintering) this process has taken another step forward and the Group consolidates its position as ‘one-stop shop supplier’ under the sign of integration, design capacity, customised offer, and innovative technologies.

K4Sint, founded by two Ph.D. materials engineers,  brings to the Swiss Group its experience in Press and Sintering, Metal Injection Molding, Spark Plasma Sintering (Titanium, Aluminum, MMC, Advanced Ceramic). Riri, therefore, integrates within its Group a company capable of developing and producing components, accessories and semi-finished products for internal use but also for customers and companies not only limited to the fashion business: K4Sint will become the go-to facility and production site for steel MIM processes of the entire group. The new unit will also be able to perform metallographic tests, innovative materials development projects and in-depth technological consultancy work for Riri’s customers.